Management: 3 numbers all entrepreneurs should know
To make good decisions, you need good data. That’s a given, right? But in a start-up, what data should you be looking at?
In the early days of a startup, sometimes there isn’t much to measure. A comparison of this year’s sales compared to last year’s isn’t all that helpful if you’ve only been around for eight months. But that doesn’t mean you shouldn’t start collecting data right away.
So where can you find relevant information? As an investor, I would offer three metrics that will give you some insight into your current operations and help you do some short-term forecasting. For most small companies, this will be a good step toward focusing attention on the information that will lead to informed decisions.